Indiana Salary Labor Laws

Indiana salary labor laws protect workers in the state regarding items like minimum wage, overtime and time-off pay. Employees are covered by many of the laws from the first day they start work. The laws are interpreted and enforced by staff members at the Indiana Department of Labor. Failure to comply with the laws can cause employers to get sued by employees and the state and receive fines and penalties.

FLSA Exemptions

Fair Labor Standards Act (FLSA) laws mandate that salaried employees working in Indiana who are classified as administrative, executive or professional workers receive at least $455 a week in standard wages. Executive employees are workers who supervise more than one worker and who make decisions that impact an organization’s workforce. For example, executive employees interview, hire and terminate the employment of other workers. Chief executive officers, heads of departments and chief financial officers are types of executive positions. Professional salaried employees require high levels of education and knowledge to perform their jobs. Attorneys, physicians and scientists are types of jobs that fit the professional classification. Finally, administrative salaried employees perform work that directly impacts management or an organization’s operations. Human resource directors and public relations managers are examples of administrative jobs.

Minimum Wage

Minimum wage for other salaried employees in Indiana is $7.25 an hour as of May 2011. The state’s minimum wage rate is the same as the federal minimum wage rate. Although employers can pay their nonexempt salaried workers more than $7.25 an hour, they are prohibited from paying them below this rate.

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Overtime Pay

Although administrative, professional and executive salaried employees are not required to receive overtime pay according to FLSA and state laws, other salaried employees in Indiana must get paid overtime after they work more than 40 hours during a week. Employers must pay employees overtime that is equal to 1 1/2 times their normal hourly wage. Therefore, workers with a standard $30 hourly wage must receive $45 an hour in overtime pay. If these employees work 50 hours during a week, they must receive $1,200 in standard pay and $450 in overtime pay for a total of $1,650.

Vacation Pay

State laws do not require employers to pay workers for taking days off. However, employers are legally responsible for following their own vacation and time-off policies. If employers have policies stating that they will pay workers for accrued and unused vacation days when they resign, they must do so. Failure to pay resigning or terminated workers for the vacation days could cause employers to get ordered by local courts to not only pay workers for vacation days they are owed, but to also pay the workers’ court fees.